Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 Year 3 Total $5,000 5,000 7,000 $ 17,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Assume that an investment provides the following cash inflows over a three-year period:
Year 1
Year 2
Year 3
Total
$5,000
5,000
7,000
$ 17,000
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables
provided.
Assuming a discount rate of 17%, what is the present value of these cash inflows?
Transcribed Image Text:Assume that an investment provides the following cash inflows over a three-year period: Year 1 Year 2 Year 3 Total $5,000 5,000 7,000 $ 17,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Assuming a discount rate of 17%, what is the present value of these cash inflows?
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